2011 (6) TMI 732 - AT - Central Excise

Summary

Issues involved: Application for waiver of pre-deposit of duty and penalty u/s 11AC of the Central Excise Act, 1944.

Summary:
The applicant sought waiver of pre-deposit of duty and penalty imposed under Section 11AC of the Central Excise Act, 1944. The demand was confirmed as the applicant was considered a manufacturer of 'Eveready Recharge' under Heading 85 of the Central Excise Tariff. The dispute arose from whether putting rechargeable batteries with a charger in a blister pack constituted manufacturing. The Revenue argued that this activity amounted to manufacture as per Section 2(f) of the Act. However, the applicant contended that the job worker, M/s. The New Engineering Co., undertook the process and cited a Supreme Court decision in support. The Tribunal noted that the applicant imported rechargeable batteries, procured chargers locally, and supplied them to the job worker for packaging. Drawing parallels with a previous case, the Tribunal found merit in the applicant's case and granted waiver of pre-deposit and stay on recovery during the appeal. The appeal was scheduled for regular hearing considering the revenue involved.

This judgment highlights the interpretation of the term 'manufacture' under the Central Excise Act, the role of job workers in manufacturing processes, and the criteria for granting waiver of pre-deposit and stay on recovery during appeal proceedings.